Novo Group, the steel trader which is expanding into tin processing and trading to help get it off the SGX Watch-list, narrowed its 1Q loss after tax to US$3.4 million ($4.8 million) from US$5.4 million a year ago.
In the three months to July, revenue fell 63.4% to US$22.9 million from a year ago. Revenue from international steel trade business, major business segment, accounted for 73.6% of the group’s total revenue for 1Q, representing US$16.6 million while revenue from tinplate processing contributed 26.3% for 1Q, representing US$6 million.
Novo says while it was business as usual in the steel trading segment and tinplate processing segments in the three months to July, the tinplate manufacturing segment remained dormant. That segment is however expected to resume operations once the additional funding comes in.
In its outlook, Novo says iron ore led declines among metals this year due to oversupply while demand remained weak. The group however expects steel exports from China to recover if its massive urbanisation project continues. Global demand for steel will also recover if the global economy improves.
Meanwhile, once its tinplate manufacturing project in Jiangsu resume operations, Novo will focus on the manufacturing and provision of quality tinplates for the export markets, directly to end-users in the food-canning and packaging sectors.
Novo last traded at 26 cents.
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In the three months to July, revenue fell 63.4% to US$22.9 million from a year ago. Revenue from international steel trade business, major business segment, accounted for 73.6% of the group’s total revenue for 1Q, representing US$16.6 million while revenue from tinplate processing contributed 26.3% for 1Q, representing US$6 million.
Novo says while it was business as usual in the steel trading segment and tinplate processing segments in the three months to July, the tinplate manufacturing segment remained dormant. That segment is however expected to resume operations once the additional funding comes in.
In its outlook, Novo says iron ore led declines among metals this year due to oversupply while demand remained weak. The group however expects steel exports from China to recover if its massive urbanisation project continues. Global demand for steel will also recover if the global economy improves.
Meanwhile, once its tinplate manufacturing project in Jiangsu resume operations, Novo will focus on the manufacturing and provision of quality tinplates for the export markets, directly to end-users in the food-canning and packaging sectors.
Novo last traded at 26 cents.
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info@epicresearch.sg
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